Rumor Patrol: Huge Chinese Cloud Data Center?

Reuven Cohen, the CTO of cloud platform provider Enomaly, discusses several interesting rumors on his ElasticVapor blog (link via John Rath). Reuven cites "multiple credible sources" on these, but notes that they're still rumors, to take with the usual grain of salt. This one is new:

I also got wind of a Chinese cloud project rumored to be currently in development "under a hydro dam" which when complete may exceed one million servers.

Reuven also mentions Microsoft's developer-focused cloud computing project code-named Red Dog. LiveSide unearthed some information about Red Dog back in April, based on a job listing which described the platform and mentioned a first version for external customers "in the coming year." While this sounds like it's still some way off, Cohen notes that "a Microsoft cloud could pose a serious threat for any companies looking to build their own Windows-based cloud offerings."